Bitcoin’s price fell below $95,000 amid a rise in U.S. inflation data for January, negatively affecting investor sentiment and the broader crypto market. Ethereum, XRP, and other altcoins also suffered declines. Goldman Sachs notably increased its investments in Bitcoin and Ethereum ETFs, while World Liberty Financial announced a reserve aimed at stabilizing major cryptocurrencies against volatility. Analysts are keeping a close watch on economic indicators impacting investment strategies.

On February 12, Bitcoin’s price fell below $95,000 following higher-than-anticipated U.S. inflation data for January, which negatively impacted investor sentiment across both cryptocurrency and traditional markets. A report from Stocktwits indicated low message volume among investors, contributing to a total crypto market decline of 3.7% within the day. Similar trends were seen in various altcoins, with Ethereum decreasing by 2.7%, XRP by 3.1%, and Solana and Cardano experiencing losses of 3.7% and 3.5%, respectively.

In addition to Bitcoin’s decline, Dogecoin dropped by 2.4%, and Trump-associated digital token $TRUMP fell 5.4%. Analysts speculate further volatility could arise ahead of the upcoming Producer Price Index (PPI) report. Steno Research cautioned that escalating inflation could create difficulties for risk assets like Bitcoin, as higher interest rates may bolster the U.S. dollar, diminishing the appeal of non-yielding assets.

Goldman Sachs disclosed in SEC filings its substantial increase in exposure to Bitcoin and Ethereum ETFs, reporting a 2,000% surge in investments in Ethereum ETFs, totaling $476 million. Meanwhile, Bitcoin ETF holdings experienced a 114% increase, amounting to $1.52 billion. The majority of these funds were directed towards BlackRock’s iShares Ethereum Trust (ETHA), Fidelity’s Ethereum Fund (FETH), and iShares Bitcoin Trust (IBIT), with the firm exiting positions in ETFs managed by Bitwise, WisdomTree, and Invesco-Galaxy.

World Liberty Financial (WLF), linked to former President Donald Trump, announced a strategic reserve aimed at stabilizing major cryptocurrencies such as Bitcoin and Ethereum. This reserve is intended to mitigate market volatility and provide support for decentralized finance initiatives. Reports indicate that Trump and affiliates hold a substantial interest in WLF’s parent company.

Market analysts remarked that the inflation increase was anticipated due to seasonal pricing variations. Nic Puckrin of Coin Bureau suggested Trump’s trade tariffs should not be blamed for inflation, as they might contribute to disinflation. Federal Reserve Chair Jerome Powell mentioned that the Fed would assess critical economic statistics, including the PCE index on February 28 and unemployment data on March 7, prior to making policy decisions.

Bitcoin has maintained trading between $90,000 and $109,000 for over two months, having more than doubled in value over the past year. However, it has exhibited only a 1% increase in the year 2025, and was last noted trading at $97,250.24 despite recent fluctuations.

In conclusion, Bitcoin’s decline below $95,000 was influenced by rising U.S. inflation, triggering negative investor sentiment and a broader downturn in the crypto market. Increased ETF investments by Goldman Sachs and the establishment of a crypto reserve by World Liberty Financial indicate strategic maneuvers amid challenging macroeconomic conditions. Analysts continue to monitor key economic data prior to potential shifts in U.S. monetary policy, underscoring the tenuous nature of risk assets in light of inflationary pressures.

Original Source: coinmarketcap.com

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